Tolling Agreement to Combine Expertise of Agricultural and Energy Markets
DEERFIELD, MO. – Drawing on each company’s strength in its respective industry, Prairie Pride, Inc., and Tenaska BioFuels, LLC have entered into a tolling arrangement to expand and grow Prairie Pride’s production and marketing of soybean products.
Under the agreement, Tenaska BioFuels will provide funding to purchase soybeans, which Prairie Pride’s state-of-the-art crush/extraction facility will process into high protein soybean meal, soy hull pellets and soybean oil. Tenaska BioFuels, under the agreement which is effective immediately, will toll process up to the daily 60,000-bushel capacity of Prairie Pride’s facility.
The companies will cooperate to purchase the soybeans. Once they are processed, Prairie Pride will assist in the marketing of the meal and hull pellets, while Tenaska BioFuels will market the oil. The agreement allows Prairie Pride to use its adjoining biodiesel facility to refine and market high quality ASTM D6751 biodiesel (soy methyl ester) made from soybean oil.
Prairie Pride, located near Deerfield, Mo., is a cooperative agriculture association with more than 1,000 soybean producing members. Tenaska BioFuels is an affiliate of Tenaska, Inc., one of the nation’s largest independent energy companies.
“Our agreement with Prairie Pride demonstrates the productive synergies that can be realized by applying time-tested energy industry models to agricultural processes,” said Dave Neubauer, vice president and general manager of Tenaska BioFuels.
“We are providing the ‘fuel,’ in this case soybeans, to be processed into marketable commodities. By drawing on Tenaska’s experience in energy tolling, we are confident that the concept can help expand Prairie Pride’s business,” he said.
Prairie Pride General Manager John Nelson said Tenaska BioFuels’ expertise in international soybean and corn oil marketing also fits well with the Prairie Pride team’s skills in processing and marketing soybean products.
“We believe our agreement with Tenaska BioFuels demonstrates that independent producers and sellers in bio-commodity markets can compete with the multinational agri-giants and provide the kind of competition that will benefit producers and consumers worldwide,” he said.
“This partnership will allow us to begin immediately to bid for soybeans and to offer soybean meal and pellets for delivery within the next 30 days. With harvest quickly approaching, we want to be fully functional as soon as soybeans become available,” said Kent Engelbrecht, commodity manager for Prairie Pride.
About Prairie Pride, Inc.
Prairie Pride, located near Deerfield in West Central Missouri, is a new-generation cooperative agriculture association with more than 1,000 soybean producing members. It is organized to develop, construct and operate an integrated soybean crushing/extraction plant and biodiesel refinery that can process up to 60,000 bushels of soybeans per day. Prairie Pride has three main goals: to provide soybean producers with a value-added solution to marketing their soybeans; to reduce the United States’ dependency on foreign oil; and to reduce pollution with clean, bio-degradable fuel. To learn more about Prairie Pride, visit the company Web site at www.prairieprideinc.us.
About Tenaska BioFuels, LLC Tenaska BioFuels, LLC is the biofuels marketing affiliate of Omaha, Nebraska-based energy company Tenaska, one of the leading independent power producers in the U.S. Forbes and Fortune magazines rank Tenaska 24th and 25th, respectively, among the largest privately-held U.S. companies. The company provides independent marketing, transportation, storage, risk management, procurement and financial services to ethanol and biodiesel market participants. To learn more about Tenaska, visit the company’s Web site at www.tenaska.com.
Contacts: Kent Engelbrecht, Prairie Pride, Inc.
Jana Martin, Tenaska BioFuels